Affordable Housing Program Awardees

January 26, 2012

Contact: Eric Amig - (212) 441-6807
Brian Finnegan - (212) 441-6877

FHLBNY Awards $1.55 Million in Affordable Housing Grants in Camden and Woolwich

Two projects will create or rehabilitate 89 units of affordable housing

Camden, New Jersey – The Federal Home Loan Bank of New York announced today the awards of a $1,422,000 grant to Life Management, Inc. to help finance Independence Village, which will rehabilitate an apartment complex in Camden and preserve the apartments as affordable homes for low- and very low-income families; and a $135,000 grant to the Center for Family Services to help finance the Monroe Special Needs Housing project, which will create nine new units of affordable housing for very low-income developmentally disabled individuals in Woolwich. Home Loan Bank members Valley National Bank and Fulton Bank of New Jersey submitted the applications for the funding.

“While these grants are providing supportive housing for those that need it in Woolwich, and turning around properties and providing for a safer community for those living in Camden, they will also provide for much needed construction jobs,” said Congressman Rob Andrews (NJ-1). “This investment takes us one step closer to an economic recovery.”

“Valley has long standing ties to the local communities the Bank serves,” remarked Brian Tish, senior vice president of the Livingston Commercial Lending Group at Valley National Bank. “That is why we are proud to support initiatives designed to provide affordable housing for New Jersey and New York residents.”

“Safe, decent and affordable housing is vital not only to the stability of our economy, but our communities and families, as well,” said Alfred DelliBovi, president and CEO of the Federal Home Loan Bank of New York. “The Federal Home Loan Bank of New York is proud to offer this funding to continue to support those who strengthen the foundation of this cornerstone of the American Dream. We thank all of our partners – the local lenders, the housing groups and our elected officials – for their continued support of the Affordable Housing Program, and their work towards revitalizing our country’s housing sector.”

The $1,422,000 grant for Independence Village will rehabilitate a 240-unit apartment complex and preserve the complex as affordable housing for low- and very low-income families. The project will reconfigure the 240 existing units into 148 units to allow for three-bedroom units and new amenities. This first phase will create 80 one-, two- and three-bedroom apartments. Because the site is located in a historic district, the rehabilitation will consist of minimal but necessary repairs to the exterior. This rehabilitation will stabilize a neighborhood that offers access to retail plazas, schools, and public transportation. Additional financing will be provided by Low Income Housing Tax Credits, sponsor equity, and the New Jersey Housing and Mortgage Finance Agency Special Needs Trust Fund. Valley National Bank submitted the application for the AHP funding for this project.

The $135,000 grant for the Monroe Special Needs Housing project will help fund the construction of nine apartments that will house very low-income developmentally disabled individuals. The project will be designed as a two-story apartment building with elevator service, on-site parking for wheelchair accessible vehicles, and extra-wide corridors and doors. The project property has been donated to the sponsor, and the project will meet Energy Star Certificate on standards. Additional financing will be provided by the HUD Section 811 program, the New Jersey Housing Mortgage and Finance Agency Special Needs Housing Trust Fund, and the New Jersey Division of Developmental Disabilities. Fulton Bank of New Jersey submitted the application for the AHP funding for this project.

The grants are part of $33.6 million in Affordable Housing Program subsidies that the Federal Home Loan Bank of New York will award as its 2011 AHP grant round. In total, these grants will help to finance 57 housing projects which will create or preserve 2,837 units of affordable housing, including more than 2,200 units of very low-income housing, in New Jersey, New York, Maryland and Pennsylvania. The Federal Home Loan Banks have distributed $4.3 billion in AHP funds since 1990. At the Federal Home Loan Bank of New York, the AHP has supported more than 1,300 projects with grants of more than $425 million, creating nearly 59,000 units of affordable housing and generating an estimated $8.2 billion in total development costs. For more information on today’s grants, please click here.

The Federal Home Loan Bank System’s Affordable Housing Program, created in 1989, provides member community lenders with direct subsidies, which are passed on to qualified households through a sponsoring local non-profit organization. AHP financing is combined with other funding sources to create housing for moderate-, low- and very-low-income families. Program awardees receive this funding through semi-annual competitive rounds. Each competing project must be sponsored by a financial organization that is a member of the Federal Home Loan Bank in partnership with a community-based sponsoring organization.

About Valley
Valley is a regional bank holding company headquartered in Wayne, New Jersey with nearly $16 billion in assets after the acquisition of State Bancorp. Its principal subsidiary, Valley National Bank, currently operates 211 branches in 147 communities serving 16 counties throughout northern and central New Jersey, Manhattan, Brooklyn, Queens and Long Island. Valley National Bank is one of the largest commercial banks headquartered in New Jersey and is committed to providing the most convenient service, the latest in product innovations and an experienced and knowledgeable staff with a high priority on friendly customer service 24 hours a day, 7 days a week.

Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 12 regional, stockholder-owned banks. The FHLB of New York currently serves more than 340 financial institutions in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the Federal Home Loan Banks is to support the efforts of local members to help provide financing for America’s homebuyers.

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This report contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as "projected," "expects," "may," or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.